Chapter 9 PROMOTION

ObjectivesDeveloping & Managing an Advertising ProgramDeciding on Media & Measuring EffectivenessSales PromotionPublic RelationPrinciples of Personal Selling

Major Decisions in AdvertisingObjectives Setting

Advertising Objectives Specific Communication Task Accomplished with a Specific Target Audience During a Specific Period of Time

Informative AdvertisingBuild Primary Demand

Persuasive AdvertisingBuild Selective DemandComparison AdvertisingCompares One Brand to AnotherReminder AdvertisingKeeps Consumers ThinkingAbout a Product.

The Five Ms of AdvertisingMission

Salesgoals

Adver-tisingobjectives

Advertising Budget FactorsStage in the Product Life CycleMarket Share &Consumer BaseCompetition &ClutterAdvertisingFrequencyProductSubstitutability

Profiles of Major Media TypesNewspapersAdvantages: Flexibility, timeliness; good local market coverage;broad acceptance, high believability

Limitations:Short life; poor reproduction quality; smallpass-along audienceTelevisionAdvantages: Combines sight, sound, motion; high attention; high reach; appealing to sensesLimitations:High absolute costs; high clutter; fleeting exposure;less audience selectivityDirect MailAdvantages:Audience selectivity; flexibility, no ad compe-tition within same medium; allows personalization

Limitations:Relative high cost; junk mail image

RadioAdvantages: Mass use; high geographic and demographic selectivity; low cost

Limitations:Audio only; fleeting exposure; lower attention; nonstandardized rates; fragmented audiences MagazinesAdvantages:High geographic and demographic selectivity;credibility and prestige; high-quality reproduction;long life; good pass-along readership

Limitations:Long ad purchase lead time; waste circulation; no guarantee of positionOutdoorAdvantages:Flexibility; high repeat exposure; low cost; low message competition

Limitations:Little audience selectivity; creative limitationsProfiles of Major Media Types

Classification ofAdvertising Timing Patterns

Advertising StrategyMessage ExecutionTestimonialEvidenceSlice of LifeScientificEvidenceLifestyleTechnicalExpertiseFantasyMusicalPersonalitySymbolMood orImageTurning the Big Idea Into an Actual Ad to Capture the Target Markets Attention and Interest.

Advertising EvaluationAdvertising Program Evaluation

Why the increase in Sales Promotion?Growing retailer powerDeclining brand loyaltyIncreased promotional sensitivityBrand proliferationFragmentation of consumer marketShort-term focusIncreased managerial accountabilityCompetitionClutter

Long-Term Promotional AllocationCox Direct 19th Annual Survey of Promotional Practices

Channels of Sales PromotionsMANUFACTURER

Consumer PromotionConsumer-Promotion ObjectivesConsumer-Promotion ToolsEntice Consumers to Try a New ProductLure Customers AwayFrom Competitors ProductsGet Consumers to Load Upon a Mature ProductHold & Reward Loyal CustomersConsumer Relationship Building

Deal Proneness,Liechtenstein, Burton, & Netemeyer, Journal of Retailing, Summer 1997Examination of deal proneness among consumers in a supermarket settingSurveys & Grocery Receipts usedEight types of deals:Cent-off, One-free, Gift, Display, Rebate, Contest, Sale, & Coupon

Deal Proneness,Liechtenstein, Burton, & NetemeyerCluster analysis yielded two interpretable results:49% are deal prone, 51% not24% High Deal prone, 50% intermediate, 26% deal insensitiveDeal-proneness a generalized construct - (crosses type of promotion)Younger & Less educated more likely to be deal prone

Trade PromotionsTrade-Promotion ObjectivesTrade-Promotion ToolsPersuade Retailers or Wholesalers to Carry a BrandGive a Brand Shelf SpacePromote a Brand in AdvertisingPush a Brand to Consumers

Business-to-Business PromotionBusiness-Promotion ObjectivesBusiness-Promotion ToolsGenerate Business LeadsStimulate PurchasesReward CustomersMotivate Salespeople

SpecialEventsWritten MaterialsCorporate Identity MaterialsSpeechesNewsAudiovisualMaterialsMajor Public Relations ToolsPublic ServiceActivitiesWeb Site

When might you decide to use Personal Selling? Tight budget (straight commission) Concentrated MarketFew buyers High value product Product must be customized Personal contact important Must demonstrate product Product involves trade-in/up

Sales force objectivesDesigning the Sales Force

Sales Force Structures

Workload Approach to Sales Force SizeClassify customers by sizeDetermine desirable call frequenciesDetermine total sales calls needed per yearDetermine average number of sales calls per sales representative per yearDivide total by number per rep

Sales Force CompensationFixedVariableExpense AllowancesBenefits

Recruiting & selecting sales representativesManaging the Sales Force

Time and Duty AnalysisPreparationTravelFood & BreaksWaitingSellingAdministration

Sales Representative MotivationMotivation

Evaluating SalespeopleSources of InformationAnnualTerritoryMarketing PlanWorkPlanCallReports

Training in sales techniques & professionalismImproving Sales Force Effectiveness

The Zone of Agreement

Performance EvaluationCurrent-to-PastCustomer SatisfactionQualitative Evaluation

Step 1. Prospecting and QualifyingSteps in the Selling ProcessStep 2. Pre-approachStep 3. ApproachStep 4. Presentation/ Demonstration

Steps in the Selling Process Step 5. Handling Objections Step 6. Closing Step 7. Follow-Up

Alternative Steps:Find emGrab emShow emAnswer emSell emKeep em

Retailer - scanner data, industry consolidation -MFGs want to break throughLoyalty & Sensitivity & proliferation - we did thatFrag - more media, more targetedShort-term&Account - US Business, stock mkt, not BE

Father of PR was Edward Bernays, turns out he was Freuds nephew! Value of some good brand publicity/movie placements:SPECIAL EVENTS:Reeses Pieces sales jumped 85% after E.T.Mumford High sold $1M in school shirts after Beverly Hills CopCA. Raisin Board paid $25K for bus-stop sign and raisin eating scene in Back to the future. Coke and Pepsi scout out roles full time.